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Middle class would face higher taxes, under Republican plan, analysis finds

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JamesAquila

Posted: Jun 20 2012, 08:33 AM

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QUOTE

Middle class would face higher taxes under Republican plan, analysis finds

By Lori Montgomery

The tax reform plan that House Republicans have advanced would sharply cut taxes for the wealthiest Americans and could leave middle-class households facing much larger tax bills, according to a new analysis set to be released Wednesday.

The report, prepared by Senate Democrats and reviewed by nonpartisan tax experts, marks the first attempt to quantify the trade-offs inherent in the GOP tax package, which would replace the current tax structure with two brackets � 25 percent and 10 percent � and cut the top rate from 35 percent.

Those changes would benefit virtually every taxpayer, but they also would reduce federal tax collections by about $4.5 trillion over the next decade, according to the nonpartisan Tax Policy Center. To avoid increasing the national debt by that amount, GOP leaders such as House Budget Committee Chairman Paul Ryan (Wis.) have pledged to get rid of all the special-interest loopholes and tax shelters that litter the code.

Republicans have declined to identify their targets. However, some of the biggest �loopholes� on the books are popular tax breaks for employer-provided health insurance, mortgage interest, state and local taxes, and retirement savings, which disproportionately benefit the upper middle class.

So although households earning $100,000 to $200,000 a year would save about $7,000 from the lower tax rates in the GOP plan, those savings would be swamped by eliminating major deductions, according to the report by the Democratically controlled congressional Joint Economic Committee.

The net result: Married couples in that income range would pay an additional $2,700 annually to the Internal Revenue Service, on top of the tax increases that are scheduled to hit every American household when the George W. Bush-era cuts expire at the end of the year.

Households earning more than $1 million a year, meanwhile, could see a net tax cut of about $300,000 annually.

�According to this report, while millionaires will receive a huge tax break, earners making under $200,000 will see their taxes rise significantly,� said Sen. Robert P. Casey Jr. (D-Pa.), who chairs the Joint Economic Committee.

�Ryan seems to want to have his cake and eat it, too, and this report shows that you can�t,� added Sen. Charles E. Schumer (D-N.Y.), who requested the analysis. �If you want to cut taxes on the rich and not raise the deficit, you�re going to have to basically clobber the middle class.�

http://www.washingtonpost.com/middle-class...ry.html?hpid=z4

Texan for Gore	Posted: Jun 20 2012, 02:03 PM
GSC Enforcer Group: Moderator Posts: 4483 Member No.: 2253 Joined: 20-March 07	My question here is are they talking about a tax cut for the rich on top of the Bush tax cuts that they already enjoy, or are they talking about cutting their taxes again, once/if the Bush tax cuts are allowed to expire?

ReElectAlGore2016	Posted: Jun 20 2012, 06:37 PM
GSC Patriot Group: Members Posts: 3350 Member No.: 455 Joined: 8-November 04	Ryan wants to have a double whammy against the poor

Texan for Gore	Posted: Jun 20 2012, 11:08 PM
GSC Enforcer Group: Moderator Posts: 4483 Member No.: 2253 Joined: 20-March 07	Thanks for answering my question, Clay.

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